Depreciation is decline in the value of ________.

Installation, freight and transport expenses are a part of __________.

Depreciation is decline in the market value of tangible fixed assets.

Depreciation must be charged so as to ascertain true profit or loss of the business.

Depreciation provides fund for replacement.

Depreciation is charged to reduce the value of asset to its market value.

Is depreciation cash expense?

Which method of depreciation is recognised by Income Tax authorities in India?

What is written down value method?

Under which method depreciation is calculated on the written down value of the asset?

Is a reserve a charge to Profit & Loss Account?

Distinguish between 'Provision' and 'Reserve'.

Give four examples each of 'provisions' and 'Reserves'.

On April 1,2011 X Ltd. Purchased Machinery for Rs.1,00,000with CGST and SGST @ 6%each. The accounting year of the Company ends on 31st Dec. every year. Depreciation @ 10%p.a. on the initial cost is charged to P & L Account and credited to a separate account known as 'provision for depreciation' account. On 1st July 2013,the machine purchased on 1st April 2011was sold for Rs. 60,000.You are required to prepare machinery Account and Provision for Depreciation Account upto 2013.

Rajan purchased a machine on 1 October, 2017 for Rs. 500,000 plus CGST and SGST @ 6% each. He paid Rs. 20,000 for loading/unloading and carriage expenses to bring the machine to factory. He further incurred Rs. 25000 for installing the machine. Determine:
(i) How much amount did Rajan pay to vendor of machine?
(ii) How much amount will be debited to Machinery Account?
(iii) Pass the Journal Entries giving effect to the transection.

Ram Bros. acquired a machine on 1st July, 2014 at a cost of Rs1,40,000 with CGST and SGST @ 6% each and spent Rs 10,000 on its installation. The firm writes-off depreciation at 10% of the original cost every year. The books are dosed on 31st December every year. Show the Machinery Account and Depreciation Account for three years.

Green Ltd. purchased a machinery on 1st May, 2011 for Rs. 60,000. On 1st July, 2012 it purchased another machine for Rs. 20,000
On 31st March, 2013, it sold off the first machine purchased in 2011 for Rs.38,500 and on the same date purchased a new machinery for Rs.50,000. Depreciation is provided at 20% p.a. on the original cost each year. Accounts are closed each year on 31st December.
Show the Machinery Account for three years

From the following transactions of a business firm prepare Machinery Account for two years:
1.4.2011 purchased a second-hand machinery for Rs. 80,000.
1.4.2011 spent Rs.20,000 on repairs for making it serviceable.
30.9.2011 purchased another machinery for Rs. 40,000.
31.12.2011 repairs and renewals of machinery Rs. 5,000.
Depreciation is charged at 10% p.a. on fixed installment basis. The accounts are closed on 31^st March every year.